In 2024, alcoholic drinks in China witnessed a slight decline in volume and value terms. The downturn in sales can be primarily attributed to the weaker Chinese economy and lower consumer confidence, leading to more cautious spending behaviour. This was evident in the off trade where consumers undertook more rational purchasing decisions when buying alcoholic drinks. The on-trade was also impacted with consumers opting to lower consumption in bars, restaurants and KTVs (private karaoke rooms) in order to economise. Younger adults are exhibiting lower enthusiasm towards alcohol consumption, resulting in a shortage of new drinkers in China. Meanwhile, older generations are reducing their alcohol intake due to health concerns. Despite the marginal decline in volume sales, total revenues continued to rise in 2024, driven by the premiumisation trend. In both the beer and Chinese baijiu segments, mid-to-high-priced products have gained greater popularity in 2024.
Beer remains the largest category in alcoholic drinks, while spirits leads in total revenue terms. The weak Chinese economy has dampened consumption of beer and spirits resulting in volume sales decline in both categories over 2024. In addition, beer and spirits are highly mature categories in China leaving little room for further growth in consumption. To compensate, manufacturers focused on product innovation and premiumisation to drive consumer interest and spearhead value growth.
The alcoholic drinks competitive landscape in China did not see any significant changes over 2024. Beer manufacturers are the stand-out players led by China Resources Beer (Holdings) Co Ltd and Tsingtao Brewery Co Ltd. These companies have experienced a slight loss in volume share, primarily due to weaker consumer interest in canned lager. This shift is also driven by the growing appeal of various craft and fresh beers introduced by an increasing number of niche breweries.
Chinese consumers still prefer to purchase alcoholic beverages at retail stores rather than online. Small local grocers, supermarkets and hypermarkets remain the dominant sales channels for alcoholic drinks in China. Nonetheless, retail e-commerce has grown rapidly in alcoholic drinks over recent years. Live-streaming e-commerce platforms like Douyin have attracted a significant number of consumers through influencer-driven sales. In recent years, China's on-demand instant delivery platforms, such as Meituan's Waima and Jiuxiaoer (O2O platforms), have also become significant drivers of growth in alcohol sales. Due to shifts in consumer drinking occasions, China is expected to witness a rapid rise in alcohol-centric delivery platforms in the future. These platforms will cater to increasingly diverse and scenario-based drinking preferences, meeting the evolving demands of consumers.
Due to macroeconomic conditions, weaker consumer confidence, and the waning interest in alcoholic beverages, China's on-trade sales of alcoholic drinks experienced volume decline in 2024. Off-trade sales of alcoholic beverages have been supported by the growth of e-commerce and convenience stores, among other channels. Thanks to their more cost-effective appeal, retail channels have gained significant favour among drinkers. Looking ahead, alcohol consumption occasions are expected to become increasingly diverse, with consumers no longer limited to traditional on-trade settings such as bars and restaurants.
Alcoholic drinks in China is transitioning into a phase of stable, near-zero growth, reflecting its maturation and shifting consumer dynamics. As the industry has largely exhausted its high-volume growth potential, it now faces structural constraints from both market saturation and demographic evolution. Younger generations are demonstrating reduced interest in alcoholic beverages due to shifting lifestyle preferences and heightened health awareness, while older consumers are consciously moderating their intake for wellbeing reasons. These converging trends - market maturity on the supply side and weakening demographic support on the demand side - suggest alcoholic drinks is unlikely to regain its historical growth momentum.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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